April 2016

The Opportunities In A Fit For Purpose GP Surgery

Whilst challenges will be present, a fit for purpose GP surgery presents the ability for generational planning.

Our last article provided a pretty honest view of the challenges that owners face today when it comes to a new GP surgery.

Lets look at the goals and reality that can be achieved.

The clearest objective for GPs in the UK is to deliver a quality primary care service. As the success of a practice intensifies, so does the strain on an existing building. A building that was designed for a finite number of patients 40 or so years ago now has more pressing concerns.

 

The UK Population

The UK population will rise by 10 million people over the next 25 years, according to figures from the Office For National Statistics (ONS).

With approximately 64 million people in the UK today, this is expected to rise to 74 million in 2039. As a comparison, the UK population in 1970 was 55 million people.

The development of a new surgery is often two or three times the size of the existing/previous space. Any new development is catered for the space and needs of the patients within a community as opposed to a converted house that was adapted to use as a surgery, a generation ago.

A key aspect is to allow for a surge in patient numbers, particularly when a new surgery opens.

 

The Goals Have To Be Clear From The Outset

To achieve peace of mind, goals have to be clear from the outset. What is the driver for the provision of healthcare facilities? Where does the vision start and how does it connect to an end goal?

It can perhaps be broken down into three different groups:

  • Only interested on the return on capital, as this is a secure asset class. Who is in the building and their goals is fundamentally irrelevant apart from the lease.
  • Build an income stream focused on a service to others. Interested in who the occupier is and what their future holds.
  • Identifying the capital gain out of the development opportunity. Design a facility, but as economical as possible. The cheaper it is to build, the greater capital gain by selling the income stream to (1).

  

Planning A New Future

Jerrard Keats & Wollley have recently been in conversation with a surgery to incorporate another practice. The existing surgery has served the community well, but facing the real challenge of attracting new GPs whilst the existing GPs consider retirement. This is where we have supported and consulted.

Working with Charles Higgins Partnership (who built the surgery in 2004), the GPs need to expand to accommodate half a single-handed practice patient list as they are closing. The objective now is to adjust two rooms to meet the immediate challenge. The capability is to now focus on the first part of major building works to provide additional consulting and administration rooms. This will meet the increasing patient demand without impacting on the rest of the premises whilst building is underway.

This demonstrates that to plan for the future, as opposed to making a decision to identify a new site, this is true ‘value for money.’ We believe that if you plan thoroughly then you can think ahead for expansion to be able to accommodate.

 

Generational Planning

The whole aspect of detailed planning is the key to the success or failure of a project. Understanding where a surgery has come from and its intentions, become a key strategic delivery.

Dr. Andrew Rutland from Lilliput Surgery, Poole, explains, “As the original practice grew, its 1980’s house conversion premises became unable to support the type of services that were demanded of it.”

“The ideal solution would have been to move to an alternative site with purpose built premises. Unfortunately this was not an easy challenge in an area of such high land values. The answer was to build on our own site funded through a third party.”

Fit For Purpose GP Surgery

Lilliput Surgery, Poole, Dorset

 

“The new building provides capacity to offer a range of primary care services to patients: with nursing; physiotherapy; counselling; midwifery; phlebotomy and minor surgery alongside the GPs and the attendant administrative services.”

“Since moving into the new building the practice “list size” has increased by around 15% and patients on average attend far more frequently.  The building had offered the capacity for this expansion. Even when busy the building does not appear overcrowded.  Many patients will comment on the “private care” feel to the environment.”

“The new building provides good sized and well appointed clinical rooms, comfortable waiting areas and a healthy spacious working environment for all the staff, especially the roof terrace with direct harbour views!”

 

From The Old To The New

Poole Town Surgery has its origins in the 1960s and represented a detached Victorian House. As the decades passed, attention was required. For instance, the practice manager occupied a room that was in need of being addressed, sooner rather than later. As well as a local counsellor who nearly fell out of a window as the frame fell out.

The surgery was facing a number of serious challenges. The surgery had negative equity, it represented two practices within one building, and there were early repayment fees and a constrained site due to its town centre location.

Working together with the surgery, the clients who purchased the site, they managed to make the funding work and assisting with the negative equity, the doctors were moved away from the financial challenges into clearer waters.

Ben Willis, partner from law firm, Veale Wasbrough Vizards highlighted, “GPs are highly intelligent individuals but in most cases have not had to deal with business transactions of the value or legal complexity. This lack of experience means that they need assurance and support throughout a transaction.”

The team at Poole Town Surgery have an encouraging future.

Dr. Tony Newman from Poole Town Surgery explains, “Everything has to be centred around premises that serve the people who are there every day of the week and the community.”

“The issues that we had within the old surgery, from a leaking roof, to just looking dated is something that is in the past. What we have now is a space that doesn’t feel too clinical, such as white from exterior to interior. It’s a building with true character that everyone feels a part of, it’s our home.”

 

Lets Conclude

When a surgery is allowed to evolve and the people within it are supported to grow and develop it presents a far healthier future for all stakeholder groups.

The opportunity lies in the ability to provide quality primary care provision. The key aspects to focus on are flexibility, planning, accessibility, structure and most importantly planning for future generations.


 

Perhaps it is time for you to interact with those who have helped transform spaces and create centrepieces for a community. Give Jon a call on 01202 01202 744990 or email jon@jkwproperty.co.uk